COMMISSION. 262. Commission is the percentage or compensation allowed an agent for transacting business. The agent may be known as a factor, broker, or a commission merchant. A consignment is a quantity of goods sent by a party to his agent. The consignor is the party who sends the goods. The consignee is the party to whom the goods are sent. 263. The net proceeds is the balance due the consignor, after deducting the commission and other charges. 264. The terms corresponding to percentage are as follows: 1. The money invested or collected is the base. 2. The rate % allowed for services is the rate. 3. The commission is the percentage. 265. Find the commission 1. On a sale of merchandise for $2150, at 21%. SOLUTION.-$2150 ×.02 $48.37, commission (242, 1). = FORMULA: Amt. of sales rate = commission. 2. On the sale of a farm for $4650, at 21%. 3. On the sale of 375 bbl of flour, at $6.25 a bbl., at 31%. 4. On the purchase of a farm for $13750, at 23%. 5. On the sale of a mill for $9384, at 3%. 6. On the sale of $21680 worth of wool, at 12%. 7. On the sale of 250 bales of cotton, averaging 520 lb., at 14 cents a pound, at 14%. 8. A commission merchant sells 225 bbl. of potatoes at $3.25 per bbl., and 316 bbl. of apples at $43 per bbl. What is his commission at 41%? 266. Find the rate of commission, 1. When $52.20 is paid for selling goods to the amt. of $2320. SOLUTION.-$52.20÷$2320 = .0225 = 21%, rate. (244.) FORMULA: Commission ÷ amt. of sales = rate. 2. When $78 is paid for selling goods for $5200. 5. Paid my N. O. agent $74.25 for buying 26400 lb. of rice, at 4 cts. a lb. What was the rate of his commission? 267. Find the amount of sales, 1. When a commission of $105 is charged, at 24%. SOLUTION.-$105 ÷ .025 = FORMULA: Commission $4200, amt. of sales. (246.) rate = amount of sales. 2. When $378 commission is paid, at 24%? 3. When $210 commission is charged, at 6%. 4. If an agent charges $59.50 commission, at 13%. 5. Paid an agent $394 for selling a piece of property, at 21%. What did the property bring? 268. Find the amount to be invested, 1. If $9500 is remitted to a correspondent to be invested in woolen goods, after deducting 5% commission. SOLUTION.-$9500 ÷ 1.05 $9047.62, amt. invested. (248, 1.) = FORMULA: Amt. remitted (1 + rate) =sum invested. 2. If $4455 is remitted, deducting 14% commission. 5. Sent to my agent in Chicago $1508.80, to invest in flour at $5 a barrel, after deducting his commission at 21%. How many barrels can he buy? INSURANCE. 269. Insurance is security against loss. The policy is the written contract between the insurer and the insured. The premium is the sum paid for the insurance. 270. The corresponding terms are as follows: 1. The amount insured is the base. 2. The rate % of premium is the rate. 3. The premium is the percentage. FORMULA: Amount insured rate = premium. 2. A house and furniture valued at $9700, at 3%. 3. Dry goods valued at $3840, at 3%. 4. A cargo of 5000 bu. of grain valued at $1.20 a bushel, at 21% on of its value. 5. A gentleman has a house insured for $8000, and the furniture for $4000, at 23 per cent.; what is the premium ? 272. Find the rate of insurance, 1. If $48.75 is paid for an insurance of $3250. SOLUTION.-$48.75 ÷ $3250 = .015, or 1%, the rate. (244.) FORMULA: Premium ÷ sum insured rate. 2. If $172.20 is paid for an insurance of $9840 ? 3. If $38.25 is paid for an insurance of $6120 ? 4. A house valued at $6800 was insured for its value, at a cost of $46.75. What was the rate of insurance? 273. Find the amount of insurance, 1. If it cost $38.25 to insure a certain house and furniture, at %. SOLUTION.-$38.25 ÷ .00625 = $6120, the amt ins.. (246.) FORMULA: Premium ÷ rate of ins. = sum insured. 2. If it cost $93.50 to insure a store for one-half of its value, at 13%, what is the store worth ? 3. Paid $245 insurance at 43% on a shipment of pork, to cover of its value. What was its total value? 4. A merchant paid $1500 premium on a cargo of cotton from New York to Belgium, which was 24% on its valuation. What was the amount insured? 5. A steam-mill was insured at 41%, to cover of its value. The premium paid was $526.50 what was the value of the mill? 6. A person insured his house for of its value at 40 cents per $100, paying a premium of $73.50. What was the value of the house? TAXES. 274. A tax is a sum of money assessed upon persons, property, or incomes, for public purposes. A property tax is a tax on personal property and real estate. 275. An assessor is an officer appointed to estimate the taxable value of property, prepare the assessment rolls, and apportion the taxes. 276. The corresponding terms are as follows: 1 The valuation of the property is the base. 2. The tax rate, or tax on $1, is the rate. 3 The sum to be raised is the percentage. 277. 1. For the purpose of building a bridge, a tax of $2628 was levied upon the taxable property of a town, valued at $584000. What was the tax rate? SOLUTION.—$2628÷$584000=.004, or 41 mills, the tax rate (244). FORMULA: Sum to be raised valuation = rate of tax. 2. At what rate must property, valued at $1475000, be assessed to raise a tax of $7743.75? What will be the tax upon a farm assessed at $6840 ? The amount of poll tax, if any, must first be subtracted from the whole sum to be raised, and the rate of tax found on the remainder. 3. In a certain town a tax of $5000 is to be assessed. There are 500 polls, each assessed $.75, and the valuation of the taxable property is $370000. What is the rate of property tax, and what is A's tax, whose property is valued at $7500, and who pays for 2 polls? EXPLANATION.-The sum to be raised is $5000 less 500 polls at $.75, equal to $375; $5000-$375 $4625, sum to be raised; $4625÷$370000 = .0125, the tax rate; A's tax is $7500 x .0125 + $1.50 = $95.25. 4. What is B's tax, who is assessed for $8530, and 3 polls? 5. What is C's tax, who is assessed for $987, and 1 poll? 6. In a certain district, a school house is to be built at a cost of $18527. What amount must be assessed to cover this and the collector's fees at 3% ? 7. What sum must be assessed to raise a net amount of $11123, and pay the cost of collecting at 2%? 9 |